News

Graphisoft Announces Q3 2002 Results

Revenues for quarter and year-to-date fall below 2001 figures; restructuring of the Company continues

Budapest, November 14, 2002 - Graphisoft®, a leading provider
of design and building information management solutions, announced today revenues
of 4.4 million EUR and 17.7 million for the 3- and 9-month periods ended September
30, 2002. These figures are below those of 2001 by 33.2% and 16.6%, respectively.
Delayed launch of the latest version of Graphisoft's flagship product, ARCHICAD®,
and continuing softness in Graphisoft's major markets resulted in lower than
expected Q3 revenues.

"We extended the testing period for the latest release of ARCHICAD®,"
stated Ray Small, CEO of Graphisoft. "This has pushed some first license
and upgrade revenues that were expected in Q3 into Q4 and early 2003, but will
help regenerate revenue growth in the coming period."

ARCHICAD®8 International (UK) and German versions started shipping on November
7, 2002 and the US version will ship on the 15th. The effect on revenue growth
is expected to continue through the first half of 2003 as localized versions
are released to their respective markets throughout Q4 this year and Q1 of 2003.

The continuing softness in demand in some of Graphisoft's major markets
and delayed investments due to the recession in Germany's building industry
have also had a significant impact on Q3 results.

The decrease in license revenues from the company's main product, ARCHICAD®,
and its related products (EUR -4.2M) were partly offset by significant growth in other product areas, such
as facility management and GDL. In addition, Graphisoft realized more revenues
through the provision of professional services, such as consulting.

Restructuring of the Company is proceeding. Operating expenses (17.3M EUR)
were in line with the budget and 4.9% less than the same 9-month period in 2001.
The changes instituted in the second half of 2002 are expected to have significant
impact on operating results in 2003.

Graphisoft® is a leading provider of design and management
software solutions for the architectural profession and the building industry.
Founded in 1982, Graphisoft is ranked today among the largest AEC CAD, software
developers in the world, with ten offices worldwide in addition to its headquarters.
ARCHICAD® and other Graphisoft products are used by over 100,000 architects,
facility managers and building professionals all over the world.